Oil majors remain silent on final investment decisions in Namibia despite government hopes
via The Namibian2 hours ago3 min read
Despite Namibia's target of achieving its first oil production by 2030, major oil companies have not yet announced final investment decisions FIDs for projects in the country. A FID is a critical point where project owners approve funding and sanction construction, signifying confidence in profitability and the start of significant capital spending. Petroleum commissioner Maggy Shino stated that the government's priorities have shifted from "first oil" to building a sustainable environment for the sector, and they hope companies will make FIDs in 2026. However, she did not confirm if the 2030 production target remains. Rhino Resources chief executive Travis Smithhard confirmed the company will drill its first appraisal well soon, and Chevron's Namibia country manager Beatrice Bienvenu announced a new well drilling by mid-2026. Total Energies senior vice president for Africa Mike Sangster is awaiting a decision from the Namibian Competition Commission regarding a 40% acquisition of a stake in one of Galp's oil blocks. ReconAfrica vice president Robert Mwancachilenga highlighted that policy certainty is crucial for companies to invest billions, noting that political environments and regime changes can create uncertainty that delays FIDs. Geologist Yuri Perez pointed out that Namibia's policy on flaring, given the high oil-to-gas ratio in its fields, is a challenge. The lack of clarity on whether flaring will be allowed or if gas must be reinjected increases costs and makes the
Stay in the loop
Get the pulse of Africa in your inbox
Free daily or weekly digest of the most important stories from across 10 countries. No spam, unsubscribe any time.
#Namibia#NamibiaNews#Windhoek#SADC#SouthernAfrica
Original source
This summary was AI-generated from a story originally published by The Namibian.
